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Tech giant Google has reduced staff within its cloud division, affecting fewer than 100 employees in sales operations, reported Bloomberg citing people familiar with the matter.
This decision is part of a strategic realignment to prioritise investment in AI and business growth, one of the sources said.
The layoffs follow a period of slower growth in Google’s cloud business and increased expenditure on AI initiatives.
A Google spokesperson told the publication that the company is making adjustments to “meet our customers’ needs and the significant opportunity ahead”.
“As teams have been doing across the company, we’re making changes to continue to invest in areas that are critical to our business and ensure our long-term success,” the spokesperson added.
These layoffs are part of a broader trend of workforce reductions across the tech industry, with companies like Amazon, Meta, Salesforce, and Microsoft also adjusting their headcounts.
These companies are balancing the need to invest in AI while maintaining profitability.
During Alphabet’s earnings call in February, CFO Anat Ashkenazi indicated that the company anticipates “some head count growth in 2025 in key investment areas such as AI and cloud”.
Recently, Salesforce signed a $2.5bn cloud contract with Google to integrate its customer relationship management software with Google Cloud.
This deal is expected provide customers with enhanced data, AI, trust, and action capabilities, facilitating the deployment of autonomous agents in businesses.
The partnership also leverages existing integrations, allowing for efficient data usage between Google BigQuery and Salesforce via zero-copy technology.